Private Label Among Numerator's Themes To Watch In 2024

As retailers fight for lower prices to appeal to consumer demands, private label products are emerging as a winning solution, often at the expense of established brands.

That was one of several conclusions of a new report from Numerator, Visions 24, the consumer insights and data company’s annual perspective that looks back at the past year and provides forward-looking insights into the year ahead. The “visions” are drawn from the company’s understanding of the consumer, which is gained through its industry expertise, Numerator said. 

The report notes that private label continues to rise and take unit share from name brands. Since February 2023, private label brands have consistently expanded their unit share monthly, driven by all income brackets most notably those at lower-income levels. The unit share growth is worth more than $1 billion, Numerator said.

With prices expected to remain elevated in 2024, retailers and consumers are likely to rely on private label to enhance affordability, the report said. Contributors to the growth in private label unit share include Great Value (+1.3B units vs YAG), Aldi (+188M), Kirkland Signature (+140M), Bowl & Basket (+130M), and Trader Joe’s (+129M). 

Beyond the continued growth of private label, Numerator’s report highlighted three other themes worth watching for the rest of 2024.

• Income Divide: Brands must navigate changing financial perspectives of consumers across income ranges, particularly as low-income households face disproportionate challenges.
• Health Empowered: Leaders should adopt a more physical and proactive approach to health and wellness, utilizing functional foods and partner with mobile apps to meet consumer demands.  
• Consumer Digitalization: Consumers wholeheartedly embrace technology, with GenAI poised to be a game-changer for brands. However, consumers are discerning, and trust may wane if GenAI is not executed thoughtfully.